State Farm Bank Review: A Flexible Online Bank With Low Fees
A good place to start this State Farm Bank review is by looking at some of the things it does well and some of the things it could improve on. Here’s a quick rundown:
- Wide variety of products and services
- Highly rated mobile app
- One of the largest ATM networks in the U.S.
- No physical branch locations
- Low APY on basic checking account
- High monthly service fees
About State Farm Bank
State Farm was founded in 1922 when retired farmer and insurance salesman G.J. Mecherle sold his first auto policy for $11.17. Today, the company insures more cars and homes than any other carrier in the U.S. In 1999, State Farm began offering consumer banking products, including checking accounts, savings accounts, certificates of deposit and credit cards. Here’s a brief overview:
State Farm Bank Products
|Money Market Accounts||
State Farm Bank Checking Accounts
State Farm’s standard checking account is Easy Checking, but you can also sign up for the Gold Checking and Platinum Checking packages.
In addition, there’s a Safe Debit Account that features no checks or overdraft fees. Easy Checking has no monthly maintenance fees for the first 12 months, after which the fee is $6.95 per month unless you meet certain requirements. Gold Checking carries a $14.95 monthly service fee that can be waived, while Platinum Checking has a $24.95 fee that can also be waived. Platinum Checking also earns interest.
- Easy Checking monthly fee waived if you are 65 or older, or if you have combined monthly direct deposits of $1,000 or more or an average account balance of $1,500
- Gold Checking monthly fee waived if you have an open U.S. Bank personal loan, line, mortgage or credit card
- Platinum Checking monthly fee waived if you have $25,000 in combined personal deposit or credit balances with U.S. Bank, and/or investments through U.S. Bancorp Investments
- Platinum Checking APY of 0.01%
- First order of checks free
- Overdraft protection available
- Interest-bearing option
- High monthly fees unless you meet requirements to waive them
- Low APY when compared with other similar banks
State Farm Savings Account
State Farm offers their single Standard Savings account that has a $25 minimum opening deposit. The monthly service fee is $4, but it can be waived if you are under the age of 18 or maintain a $300 minimum daily ledger balance or $1,000 average monthly collected balance.
- Overdraft protection when you link your savings to your checking account
- Automated savings options
- E-statements available
- Low monthly fee that can be waived
- Interest compounded daily
- Very low APY compared with other banks
- Only one option available
State Farm Money Market Accounts
State Farm’s Elite Money Market is the standard account. You can also sign up for a Package Money Market Savings account, Platinum Select Money Market account, and Retirement Money Market account.
- Interest compounded daily
- Overdraft protection available
- Check-writing privileges with Elite Money Market
- APY up to 0.05%
- $10 monthly maintenance fee waived by maintaining $10,000 minimum daily ledger balance
- ATM access
- No monthly fee during the first 12 months
- Low minimum opening deposit of $100 for Elite Money Market
- Low APY compared with other banks
State Farm Bank CD Accounts
State Farm offers standard CDs as well as Jumbo CDs, CD Specials, Step Up CDs and Trade Up CDs. Terms range from three months to five years. With the Trade Up CD, you can lock in a higher rate one time during your initial term.
- $500 minimum to open
- Terms from three months to five years
- Guaranteed rate for the duration of the term
- APY up to 0.25% for Standard and Jumbo CDs
- APY up to 0.40% for CD Special
- Blended APY of 0.35% for Step Up CD
- Competitive APY rates
- For Step Up CDs, rates go up every seven months for 28 months
- Customers won’t earn a higher APY for depositing more money
State Farm is an online only bank, so you won’t have the option to visit branch locations. But it does provide online banking and a mobile app that lets you manage all of the basic functions of your account. State Farm also gives customers access to a large network of U.S. Bank ATMs.
You can contact customer service seven days a week by calling 877-734-2265 for bank accounts and 877-734-8472 for credit cards. The hours are Monday through Friday from 6 a.m. to 11 p.m. CST and weekends from 8 a.m. to 8 p.m. CST.
State Farm’s website and mobile app let you handle a variety of banking tasks, including paying bills, transferring funds and depositing checks directly from your mobile phone. The app gets a rating of 4.7 stars out of 5 on Google Play and 4.8 stars out of 5 on the App Store.
How To Open an Account
All of State Farm’s banking services are offered through its partnership with U.S. Bank. To get started, you’ll apply online through the U.S. Bank website.
Customer Service Number:
- 877-734-2265 for bank accounts
- 877-734-8472 for credit cards
Routing Number: 071174431
State Farm Bank Fees
In addition to monthly service fees, State Farm charges fees for certain activities and services. Here’s a quick look:
|Paper statements with check images||$2|
|Debit card cash advance||$2|
State Farm Bank vs. Competitors
Before deciding whether State Farm is the best option for you, take the time to compare it to other banks. Here’s how it stacks up against certain rivals:
|State Farm||Online only bank with a variety of accounts and large ATM network|
|Ally Bank||High APY on interest checking|
|Capital One||High interest rate on savings|
|Comenity||High-yield savings accounts and CDs|
State Farm vs. Ally Bank
State Farm provides access to one of the largest ATM networks in the U.S., but Ally offers an APY of 0.10% to 0.25%0.25% on its checking account, giving it a big edge in that regard.
State Farm vs. Capital One
State Farm helps its customers avoid fees by offering overdraft protection. However, Capital One offers an APY of up to 0.40% on its savings accounts, which is much higher than State Farm’s APY.
State Farm vs. Comenity
State Farm has a much wider product lineup than Comenity, which specializes in high-yield savings accounts and CDs. But Comenity’s APYs 0.60% for their savings accounts and between 0.60% and 0.90% APY for their CD accounts are much higher than those offered by State Farm.
State Farm is a decent option if you are in the market for an online bank. It offers a full suite of products and services and a highly rated mobile app. And thanks to the bank’s partnership with U.S. Bank, you’ll have access to one of the largest ATM networks in the country.
Having access to U.S. Bank ATMs is a huge advantage for an online bank like State Farm, giving customers a chance to access their money in numerous places.
State Farm Bank FAQHere are the answers to some commonly asked questions about State Farm Bank.
- Who bought State Farm Bank?
- State Farm Bank announced in April 2021 that HSA Bank will be acquiring all of State Farm Bank's health savings accounts.
- Why do I open a new account through U.S. Bank?
- All of State Farm's banking products moved to U.S. Bank last year. You can open a new account on U.S. Bank's website.
- Is State Farm Bank insured by the FDIC?
- Yes; State Farm Bank is a member of the FDIC and deposits there are insured up to the federal limit.
- Does State Farm Bank offer free money for signing up for an account?
- There are no current promotions available through the bank. However, the line of banking products complements the insurance products offered to customers. There are a variety of banking accounts to choose from and you can speak with a State Farm agent to assist you with your banking needs.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Feb. 4, 2021.
This content is not provided by State Farm Bank. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by State Farm Bank.